| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 01:30 | Australia | Retail Sales, M/M | March | 0.2% | 0.4% | 0.3% |
During today's Asian trading, the US dollar declined moderately against major currencies, while market participants are adjusting their positions ahead of the publication of key data on the US labor market that will help assess the state of the economy.
The US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) rose by 0.28% to 99.91. Yesterday, the index jumped by 0.78% and remained on track for a third weekly gain after recovering from tariff-related losses earlier in the month. Analysts said markets are stabilizing, with investors watching both economic data and developments in China. U.S. Secretary of State Marco Rubio hinted at upcoming trade talks, and China's Commerce Ministry confirmed it's considering a U.S. offer to negotiate. Today, investors will focus on the U.S. nonfarm payrolls report for April. Economists expect a slowdown in job growth, with forecasts pointing to 130,000 new jobs added in April, down from 228,000 in March. The data will be crucial in shaping expectations around future Federal Reserve rate cuts. Analysts at ANZ noted the Fed will need more data to decide on rate cuts, emphasizing the importance of labor market stability.
The Australian dollar led gains against the U.S. dollar amid renewed hopes for a potential thaw in trade relations between the United States and China. The risk-sensitive Aussie climbed 0.52% to $0.6412, while the New Zealand dollar rose 0.44% to $0.5933. These currencies are often used as liquid proxies for China's tightly managed yuan due to the close trade ties between the Antipodean nations and China.
China’s offshore yuan strengthened to a near one-month high, as optimism surrounding the trade discussions grew. Mainland Chinese markets remained closed for a long holiday, but the yuan’s movement reflected broader market anticipation of reduced tensions.
Against the Japanese yen, the dollar fell 0.2% to 145.25 after reaching 145.91—its highest level since April 10. The yen weakened after the Bank of Japan left interest rates unchanged and downgraded its growth forecasts, citing uncertainty around U.S. trade policy. This effectively signals a pause in further tightening until there is more clarity on the economic fallout.